Pernod, LVMH, Rémy spared from China tariffs on Cognac

China has excluded the three major spirits giants from its punitive tariffs on Cognac, announced today (4 July).

Pernod, LVMH, Rémy spared from China tariffs on Cognac

Pernod Ricard, LVMH and Rémy Cointreau have all been spared from China’s duties of up to 34.9% on EU brandy producers.

Announced today, China’s Ministry of Commerce (MOFCOM) has confirmed anti-dumping tariffs on EU brandy of up to 34.9% beginning on 5 July 2025 and lasting for five years. The average duty imposed, which applies to wine spirits, marc spirits, and brandies from the EU, is 32.2%. This average duty is slightly lower than the provisional average duty imposed since October 2024.

This is the Ministry’s final ruling on the subject, which has caused uncertainty for brandy producers, most of which are Cognac houses in France, since January 2024.

Florent Morillon, President of the Bureau National Interprofessionnel du Cognac (BNIC), said: “This decision marks the end of the anti-dumping investigation, but not the end of our action to ensure that all our exporters regain unrestricted access to the Chinese market as soon as possible. In the meantime, the minimum price commitment regime offers more tolerable conditions for our companies than the announced definitive anti-dumping taxes, even if the market access they allow remains degraded.”

According to Reuters, most of France’s cognac industry — including big brands LVMH-owned Hennessy and Remy Martin — will be exempt from the duties provided they sell at a minimum price, the ministry said in a statement.

MOFCOM did not disclose the minimum prices.

The BNIC said in a statement shared with db: “This minimum price commitment regime, which in no way constitutes recognition of a dumping practice, will be less unfavorable than the anti-dumping taxes. Nevertheless, the companies benefiting from it will remain in a degraded situation compared to the conditions they experienced in the Chinese market before the procedure launched in January 2024.

“This is why we renew our appeal to the French government and the European Commission to find a political agreement as soon as possible with the Chinese authorities to return to a situation without anti-dumping duties.”

The MOFCOM announcement also confirms the restoration of guarantees paid since October 2024. However, no information is given on the reopening of the duty-free market, from which Cognac has been excluded since December 2024 and which traditionally represents nearly 20% of its sales in China.

In 2023, prior to tariffs, China imported around US$1.7 billion worth of French brandy – almost entirely Cognac – and was the industry’s most important single market as measured by value and the second-largest by volume after the United States.

By February, the dispute had cost Cognac more than €50m in lost sales. Those losses have continued to grow because of a “deposit” scheme placed on the imports, but also because the lucrative travel retail market in China has effectively been shut off. Read more here.

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